“Emerging-market stock volatility fell to the lowest level since 1997 as the benchmark index headed for the biggest weekly gain in a month. Indonesian stocks rose to a record, while shares in Russia fell.
Geely Automobile Holdings Ltd. advanced to the highest level in more than two years in Hong Kong, extending yesterday’s gain after January sales jumped to a record. PT Bank Rakyat Indonesia led gains in the nation’s benchmark index in Jakarta. Dr. Reddy’s Laboratories Ltd.slumped as Bank of America-Merrill Lynch downgraded the stock. OAO Sberbank dropped by the most in three months in Moscow.
The MSCI Emerging Markets Index climbed for a fourth day, adding 0.1 percent to 1,066.53 at 4:55 p.m. in Hong Kong, poised for the longest winning streak since Jan. 3. The measure’s 50- day volatility sank to 8.06 today, the lowest level since July 15, 1997, data compiled by Bloomberg show. The gauge has increased 0.5 percent this week, heading for its biggest weekly gain since the five days ended Jan. 18. About five stocks dropped for every four that increased.
“The market is very quiet and will have to be driven by earnings,” Vivien Loh, who helps manage the equivalent of $420 million at Phillip Capital Management Sdn., said by phone from Kuala Lumpur.
About 60 percent of companies in the emerging-stocks gauge that have reported earnings for the quarter ended Dec. 31 have missed estimates, according to data compiled by Bloomberg.
